Israeli Fugitive to Pay $54m to Settle U.S. Fraud Suit

Kobi Alexander, former CEO of Comverse, fled to Namibia in 2006 and has been fighting extradition to the U.S.

Jacob "Kobi" Alexander, the fugitive former chief executive of Comverse Technology Inc,
agreed to pay nearly $54 million to resolve civil litigation brought by the U.S. government over the backdating of stock options, court papers show.

The settlement also resolves a civil lawsuit by the U.S. Securities and Exchange Commission. It was announced by U.S. Attorney Loretta Lynch in the Eastern District of New York.

Former Comverse CEO Kobi Alexander

Alexander will forfeit $26.2 million of ill-gotten gains and $21.4 million of interest, according to settlement papers filed with the federal court in Brooklyn, New York.

He also agreed to a $6 million civil fine, the papers show.

"Mr. Alexander is pleased to have resolved the SEC and civil forfeiture actions, and to put these matters behind him," said Jeremy Temkin, a lawyer for Alexander.

Alexander was arrested in Namibia in 2006 following an international manhunt, and has been fighting extradition to the United States. He remains in Namibia, Temkin said.